#1Q4 & Fiscal Year 2021 Financial Results SONOS November 17, 2021#2Forward Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal year ending October 1, 2022; our fiscal 2024 targets; our long-term focus; financial, growth; business strategies and opportunities; growth metrics and targets; our business model; new products, services and partnerships; profitability and gross margins; our direct-to-consumer efforts; our market share; our tariff expenses; and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to, the duration and impact of the COVID-19 pandemic and related mitigation efforts on our industry and supply chain; supply chain challenges, including shipping and logistics challenges and significant limits on component supplies; changes in general economic or market conditions that could affect consumer income and overall consumer spending; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to meet product demand and manage any product availability delays; and the other risk factors set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended July 3, 2021, and our other filings filed with the Securities and Exchange Commission (the "SEC"), copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this letter, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events, except to the extent required by law. Non-GAAP Measures Additional information relating to certain of our financial measures contained herein, including non-GAAP financial measures, is available in the appendix to this presentation.#3Fiscal Year 2021 Highlights SONOS • Record Fiscal Year (FY) results driven by continued strong demand • Record FY adjusted EBITDA margin of 16.2% driven by strong demand, opex leverage on higher sales, and gross margin expansion Record FY revenue of $1.717B, +29% from LY (+32% ex 53rd week LY) driven by strong overall product demand, success of new product launches, and partially offset by continued constrained product availability Record FY gross margin of 47.2%, +410 bps. Excluding net effect of tariffs, +130 bps driven by product mix, lower promotional activity, and partially offset by higher supply chain related costs Record 3.0 products per household vs. 2.9 LY; ending year in 12.6M homes and existing households represented 46% of new registrations Generated $208M of free cash flow Note: Unaudited. See appendix for reconciliation of GAAP to non-GAAP measures.#4Expansion of our Offerings - FY21 Sonos Radio HD - Launched November 2020 - $7.99/mo New ad-free, high-definition streaming tier. Sonos Radio HD features even more exclusive content directly in the Sonos app, now in lossless, CD-quality audio. Roam - Launched April 2021 - $179 MSRP The ultra-portable smart speaker built to deliver great sound at home and on any adventure. Audi Partnership - Announced April 2021 First-ever automotive audio partnership featuring a Sonos-tuned premium sound experience in the Audi Q4 e-tron and future models, including the A1, Q2 and Q3. IKEA Partner Products - Launched June and September 2021 Latest evolution of our long-term partnership, including the new SYMFONISK picture frame, which delivers room-filling sound and doubles as a piece of art, and updated SYMFONISK table lamp speaker featuring a completely new acoustic architecture that delivers wider, richer sourd. Rock > H ગાજ Sonos Radio SONOS | 0000#5Expansion of our Brand - FY21 Named to Fast Company's Brands that Matter in 2021, a list that captures brands who are inspiring all of us, whether it be leading in pop culture or responding meaningfully to current events. First-ever sports team partnership with Liverpool Football Club, a multi-year partnership naming Sonos the Official Sound Partner of Liverpool FC and creating immersive sound experiences within Anfield Stadium. Teamed up with ESPN as an Official Sponsor of ESPN College Football. Multi-faceted partnership with the North Face and Sonos Radio in celebration of the launch of Roam. Launched new exclusive programming on Sonos Radio, partnering with artists such as Brian Eno, Erykah Badu, M.I.A., and more, and grew Sonos Radio HD with geo expansion to five new countries: Austria, Canada, France, Germany, and The Netherlands. BRANDS THAT MATTER Fast Company's first-ever Brands That Matter list-featuring Patagonia Provisions, McDonald's, Ikea, Yeti, and more-honors companies and nonprofits that have had an undeniable impact on business and culture. FIRMINO 9 MANE 10 NEVER STOP EXPLORING THE NORTH Bril COLLEGE FOOTBALL OFFICIAL SPONSOR TM SONOS#6Delivering Operational Excellence - FY21 Continued strong execution delivering margin expansion and healthy top-line growth in fiscal 2021. Tremendous efforts of our team navigating a challenging supply chain and logistics environment. Included in Inc. Magazine's first-ever list of the 250 Best-Led Companies, coming in at #13. The list highlights America's thriving midsize companies that are the unsung heroes of the US economy and the standout CEOs who are setting the gold standard for leadership. Published annual Listen Better Report, highlighting the work we have done to improve our efforts as a responsible company. In 2021, we developed our first climate action plan, which we will be sharing alongside our annual Listen Better report in December. Inc. Best-Led Companies Listen D LLCI Listen Better Listen Better Listen Better Listen Better Listen Retter#7Strong Financial Performance and Execution $1,137 FY2018 $69 FY2018 NET REVENUE $1,261 FY2019 $89 $1,326 ADJUSTED EBITDA* FY2019 FY2020 $109 FY2020 Note: $ in millions. *See appendix for reconciliation of GAAP to non-GAAP measures. $1,717 +29% FY2021 $279 +157% FY2021 43.0% FY2018 $(5) FY2018 GROSS MARGIN 41.8% FY2019 $97 43.1% FREE CASH FLOW* FY2019 FY2020 $129 FY2020 47.2% +410 bps FY2021 $208 +61% FY2021#8Q4 Highlights NNN E~#9Record Q4 Revenue; Adjusted EBITDA Impacted by Industry-Wide Supply Chain Dynamics and Investment Q4 Revenue $294.2 Q419 Q4 Adjusted EBITDA ($2.8) Q419 $339.8 Q420 $46.4 Q420 $359.5 Q421 $17.1 Q421 Revenue +14% ex 14th week LY (+6% reported) due to strong product demand and partially offset by continued constrained product availability Adjusted EBITDA declined to $17.1M; adjusted EBITDA margin decreased to 4.8% from 13.7% LY driven by impact of constrained product availability on revenue, opex investments in future growth, and increased component and logistics costs Gross margin -110 bps to 46.4%; ex tariff duties and refunds, gross margin -260 bps to 45.7% primarily due to increased component costs, and shipping and logistics costs related to broader industry-wide supply chain challenges. Note: $ in millions, unaudited. See appendix for reconciliation of GAAP to non-GAAP measures. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.#10Gross Margin Impacted by Industry-Wide Supply Chain Dynamics Gross margin -110 bps Y/Y (ex tariffs -260 bps). Key drivers: $7M tariff refund; $4M tariff expense Increased component costs Ongoing higher industry-wide shipping and logistics costs 42.2% 42.7% 47.5% 48.3% Gross Margin 46.4% Q419 Q420 Note: Unaudited. See appendix for reconciliation of GAAP to non-GAAP measures. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. Q421 Gross Margin ex Tariff Duties and Refunds 45.7%#11Opex Investments to Support Long-Term Growth Research and Development (GAAP) Restructuring and related charges Adjusted Research and Development (Non-GAAP) % of revenue Sales and Marketing (GAAP) Restructuring and related charges Adjusted Sales and Marketing (Non-GAAP) % of revenue General and Administrative (GAAP) Restructuring and related charges Legal and transaction related costs Adjusted General and Administrative (Non-GAAP) % of revenue Total Operating Expenses (GAAP) Restructuring and related charges Legal and transaction related costs Adjusted Operating Expenses (Non-GAAP) % of revenue Q421 $65.8 $65.8 18.3% $73.2 0.2 $73.1 20.3% $39.5 5.0 $34.4 9.6% $178.5 0.2 5.0 $173.3 48.2% Q420 $54.8 0.1 $54.7 16.1% $58.3 $58.3 17.2% $33.0 6.2 $26.8 7.9% $146.1 0.1 6.2 $139.8 41.1% Y/Y Change 20.1% n/m 20.4% 220 bps 25.5% n/m 25.3% 310 bps 19.6% n/m (18.5%) 28.4% 170 bps 22.2% 32.0% (18.5%) 23.9% 710 bps Excluding restructuring and related charges and legal and transaction related costs, opex increased 24% driven by the following factors: O R&D +20% primarily due to higher product development and other R&D costs O S&M +25% primarily due to higher marketing expenses related to supporting new product launches, as well as higher bonus compensation G&A ex legal and transaction costs +28% due to IT investments and increased bonus and stock comp Note: $ in millions, unaudited. See appendix for reconciliation of GAAP to non-GAAP measures. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.#12Fiscal Year 2021 Highlights H HARRY POTTERSPE A. SON ROY CHOI Hats Caday Cardig PASTA BY HAND THE LEBANESE KITCHEN kardiot contessa foolproof 1 Christ do it KO TAK WILLIAM EGGLESTON S are What has to otse dand with your back on the All About Dinnery Small Victo DOMBRO WANDERING ON THE W BODILY Make:#13Strong Household Growth; Continued Expansion in Products per Household Total Households (cumulative - in millions) % Registrations to Existing Households Average Registrations per Total Households Total Listening Hours (in billions)* Note: Total listening hours excludes Bluetooth listening FY21 12.6 46% 3.0 12.1 FY20 Y/Y Change 10.9 41% 2.9 10.2 15% 19% Ending FY2021 with 12.6M households, +15% vs LY on top of 20% growth last year Existing households accounted for 46% of new product registrations up from 41% last year Average number of registered products per household increased to 3.0 vs 2.9 LY Listening hours +19% on top of +33% last year#14Demonstrating Significant Scale and Profitability FY Revenue $1,260.8 FY19 FY Adjusted EBITDA $88.7 $1,326.3 FY20 $108.5 FY19 Note: $ in millions. See appendix for reconciliation of GAAP to non-GAAP measures. FY20 $1,716.7 FY21 $278.6 FY21 Revenue +29% to $1.717B; excluding 53rd week, revenue +32% Adjusted EBITDA +157%; adjusted EBITDA margin +800 bps to record 16.2% driven by strong demand, opex leverage on higher sales, and gross margin expansion Gross margin +410 bps to 47.2%; ex net tariffs, gross margin +130 bps to 46.9% driven by lower promotional activity, product and material cost reductions in Q1, product mix, and partially offset by higher supply chain related costs Free cash flow $207.7M vs $129.0M LY#15Continued Strong Gross Margin Expansion Gross margin +410 bps (ex tariffs, gross margin +130 bps). Key drivers: 41.8% $18.3M tariff refunds; $13.7M tariff expense Lower promotional discounts (LY included "At Home With Sonos" campaign) Product and material cost savings in Q1 Mix shifts into higher margin products and channels Offset by component material costs, shipping and logistics costs related to broader industry-wide supply chain dynamics FY19 41.9% Note: See appendix for reconciliation of GAAP to non-GAAP measures. 43.1% 45.6% FY20 Gross Margin 47.2% Gross Margin ex Tariffs 46.9% FY21#16Significant Opex Leverage on Higher Sales Research and Development (GAAP) Restructuring and related charges Adjusted Research and Development (Non-GAAP) % of revenue Sales and Marketing (GAAP) Restructuring and related charges Adjusted Sales and Marketing (Non-GAAP) % of revenue General and Administrative (GAAP) Restructuring and related charges Legal and transaction related costs Adjusted General and Administrative (Non-GAAP) % of revenue Total Operating Expenses (GAAP) Restructuring and related charges Legal and transaction related costs Adjusted Operating Expenses (Non-GAAP) % of revenue FY21 230.1 230.1 13.4% 272.1 (2.5) 274.6 16.0% 152.8 30.1 122.8 7.2% 655.0 (2.4) 30.1 627.4 36.5% FY20 214.7 5.1 209.6 15.8% 263.5 19.8 243.8 18.4% 121.0 1.4 15.5 104.1 7.8% 599.2 26.3 15.5 557.4 42.0% Y/Y Change 7.2% (99.5)% 9.8% (240 bps) 3.3% (112.5)% 12.7% (240 bps) 26.3% (100)% 94.5% 17.9% (60 bps) 9.3% (109.3)% 94.5% 12.6% (550 bps) R&D +10% ex restructuring primarily driven by increased headcount, higher stock-based compensation and bonus, and new product development costs S&M +13% ex restructuring due to higher marketing, higher revenue related fees, and higher bonus costs G&A +18% ex restructuring and legal costs due to higher personnel-related costs and IT investments#17Significant Cash Flow and Strong Balance Sheet Cash flow from operations Capital expenditures Capex % of revenue Free cash flow Free Cash Flow / Adj EBITDA Ending cash & cash equivalents Ending total debt FY21 $253.2 $45.5 2.7% $207.7 75% $640.1 $0 FY20 $162.0 $33.0 2.5% $129.0 119% $407.3 $24.9 Y/Y Change 56% 38% 61% 57% NM Cash flow from operations of $253M, +56% from LY Free cash flow of $208M, +61% from LY ● Free cash flow / adjusted EBITDA of 75% ● Capex of $46M, 2.7% of revenue, largely driven by manufacturing-related investments to support the launch of new products Cash and cash equivalents of $640M, no debt Note: $ in millions, unaudited. See appendix for reconciliation of GAAP to non-GAAP measures. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.#18FY22 Outlook: Continued Strong Demand Offset by Supply Constraints Revenue % growth Gross Margin Adjusted EBITDA Adjusted EBITDA Margin Other Key Assumptions: Tariffs FY21 Actuals $1.717 billion 29% 47.2% $278.6 million 16.2% $4.6 million net tariff benefit ($18 million refunds; $14 million expense) Note: Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. We do not provide a reconciliation of forward-looking non-GAAP measures to their comparable GAAP financial measures. See "Non-GAAP Measures" for more information. FY22 outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. FY22 Outlook $1.925 billion - $2.0 billion 12% -16% 46 - 47% $280 million - $325 million 14.5% -16.2% Minimal net tariff benefit#19Our Strategic Initiatives Expand Our Brand Expand Our Offerings Drive Operational Excellence#20Trends Fueling Our Growth 1 The Golden Age of Audio Spotify pandora ...deezer amazon music YouTube Music TIDAL Yandex Music Music audible Pocket Casts Calm Clubhouse 2 Hollywood at Home 3 The Great Reshuffling#21Our Opportunity: Homes PLUS Geographic Expansion 349M Households in Core Markets¹ 116M Affluent ($75k+²) Households Source: Euromonitor CY2020 - CY2021 report not yet available and using CY2020 market data. 1. Core Markets include the United States, Canada, Australia, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland and Poland 2. Represents disposable income as defined by the OECD. 12.6M Sonos FY21 Households#22Our Opportunity: Revenue PLUS Audio content, services & business $89B Global Audio $25B Global Home Audio $18B Premium Global Home Audio Source: Futuresource CY2020, Premium defined as $100+ wireless speakers, $200+ soundbars, $300+ Hi-Fi systems, $250+ in-wall/in-ceiling speakers, CY2021 report not yet available.. $250+ bookshelf speakers (pairs), and all AV receivers, Floor-standing speakers, home theater speakers and home theater in a box products and Hi-Fi separates $1.7B Sonos FY21 Revenue#23Confidence in FY2024 Financial Targets Revenue ~13% CAGR Gross Margin 45-47% Adjusted EBITDA Margin 15-18%#24Appendix SONOS#25Non-GAAP Measures We have provided in this presentation financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. We define adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes and other items that we do not consider representative of our underlying operating performance. We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We calculate gross margin excluding the impact of tariff duties and refunds as gross profit dollars removing the impact of tariffs imposed on goods imported to the U.S. from China and any tariffs refunds subject to a tariff refund claim approved by U.S. Customs and Border Protection divided by revenue. We define free cash flow as net cash from operations less purchases of property and equipment. We calculate adjusted EBITDA excluding the effect of tariff duties and refunds as net income excluding the effect of tariffs imposed on goods imported to the U.S. from China and any tariffs refunds subject to a tariff refund claim approved by U.S. Customs and Border Protection and adjusted to exclude the impact of depreciation, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes and other items that we do not consider representative of our underlying operating performance. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, we do so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for certain items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook.#26Reconciliation of Net Income (Loss) to Adjusted EBITDA Net income (loss) Add (deduct): Depreciation and amortization Stock-based compensation expense Interest income Interest expense Other (income) expense, net Provision for (benefit from) income taxes Restructuring and related expenses (1) Legal and transaction related costs (2) Adjusted EBITDA Revenue Adjusted EBITDA margin October 2, 2021 ($8,744) 8,093 Note: $ in thousands, unaudited. 15,372 (33) 67 2,271 (5,106) Three Months Ended 165 5,028 $17,113 $359,539 4.8% October 3, 2020 $18,411 8,733 15,971 (43) 300 (3,273) 34 125 6,170 $46,428 $339,837 13.7% Twelve Months Ended October 2, 2021 $158,595 33,882 62,127 (146) 592 (2,407) (1,670) (2,446) 30,058 $278,585 $1,716,744 16.2% (1) Restructuring and related expenses for the twelve months ended October, 2021, include a gain of $2.8 million, related to our negotiation for the early termination of a facility lease that was part of the 2020 restructuring. The gain represents the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. October 3, 2020 ($20,115) (2) Legal and transaction related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet Inc. and Google LLC as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance. 36,426 57,610 (1,998) 1,487 (6,639) 32 26,285 15,455 $108,543 $1,326,328 8.2%#27Gross Profit and Margin Excluding the Impact of Tariffs Revenue Reported gross profit Add/deduct: Tariffs, net of refunds Adjusted gross profit Gross margin Adjusted gross margin Note: $ in thousands, unaudited. October 2, 2021 $359,539 166,931 (2,705) 164,226 46.4% Three Months Ended 45.7% October 3, 2020 $339,837 161,536 2,442 163,978 47.5% 48.3% Twelve Months Ended October 2, 2021 $1,716,744 809,994 (4,564) 805,430 47.2% 46.9% October 3, 2020 $1,326,328 571,956 32,342 604,298 43.1% 45.6%#28Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow Cash flows provided by operating activities Less: purchases of property and equipment, intangible and other assets Free cash flow Note: $ in thousands, unaudited. Twelve Months Ended October 2, 2021 $253,226 (45,531) 207,695 October 3, 2020 $161,986 (33,035) 128,951#29SONOS